The Washington State Board of Community and Technical Colleges (SBCTC) is currently fighting the possible loss of $28 million in governmental funds after a critical budgeting error by the Office of Financial Management (OFM).
On Sept. 13, Bellevue College President David May briefly discussed the details of the ongoing situation in a short email addressed to the BC community. The Office of Financial Management made a major budgeting error by inadvertently duplicating the amount of funds intended for the 2025 fiscal year. It’s stated that the system was over-allocated by roughly $47 million — $19 million for the fiscal 2023 to 2024 year, and $28 million for the fiscal 2024 to 2025 year. Now, the state government is asking the SBCTC to withdraw the $28 million for this school year.
If the $28 million is yielded, it could lead to possible layoffs for all community colleges, program delays and shutdowns, and potential cutbacks to reduce expenses. Because of these potential repercussions, the SBCTC and community colleges across the state are actively fighting to keep the funds.
“I can tell you that if this take-back occurs, it will amount to a serious budget cut to our college system this academic year,” said Raechel Dawson, Bellevue College’s Associate Director of Communications. “We invested in programs, services and staffing for our students based on the amount the legislature approved for us. That’s why we’re asking OFM and the legislature to not backtrack on this funding.”
For those curious as to what caused this issue — to explain it as straightforwardly as possible, when the OFM designed the budgeting plans for the 2021 to 2023 fiscal years, they allocated funds for a cost-of-living raise for the state’s community and technical college faculty, which is required by state law. The state also requires these allocations and spendings to be tracked over a four year period, meaning they’ve also included several estimated salary adjustments for the 2024 and 2025 years. These initial estimations were supposed to be updated by writers of the 2023 to 2025 budget. Instead, both the initial placeholder amounts and new salary figures were included by writers of the 2023 to 2025 budget, which has led to the current budgeting error.
As of recently, no known actions have been taken against those responsible for the error.
In response to the recent events, the SBCTC recently passed a vote to propose a budget request that could keep the state’s community colleges financially stable as the board maneuvers through the crisis. The budget request presents two options: an increase in SBCTC’s base funding or a raise in its College Affordability Program, an initiative dedicated to reimbursing community colleges for lost revenue back in a 2015 tuition cut. If this effort is unsuccessful, it could lead to dire consequences for all community and technical colleges in Washington State, including Bellevue College.
Despite the severity of this situation, President May has made it explicitly clear that Bellevue College is capable of navigating through the issue, stating that the college “is in a strong financial position to manage this in the short term.” He also states that he and other Bellevue College executives are actively formulating a longer-term response. However, President May also cautioned the possibility of adjustments to the college’s budgets and finances if the $28 million is distributed back to the state.
As for an estimate on when the issue could be resolved, it is currently unclear. However, Dawson states that more information about the issue’s resolution will likely be known by the spring 2025 legislative session.
In the meantime, President May is committed to helping resolve this issue, stating in his email that he, along with other community college presidents and the SBCTC are “actively exploring potential legislative solutions.” According to Dawson, plans to explore other options for the next legislative session will occur in January 2025.
Dawson hopes that this budgeting error can serve as a reminder that financial support is essential in producing and maintaining higher quality post-secondary education.
“Through this budgeting error, I believe a larger conversation on the cost and values of what it takes to educate our future workforce is on the table. It takes financial support to continue to provide high-quality post-secondary education in our state,” Dawson says in her final statement to the Watchdog. “By 2031, the Washington Roundtable estimates 72% of jobs will require some post-secondary education. Community and technical colleges provide an affordable alternative for many.”
Anyone interested in this ongoing situation should expect periodic updates from President May and other Bellevue College board members throughout the next several months.
